Our Stock of the Week is Aurinia Pharmaceuticals. (AUPH). AUPH has developed Lupkynis, which is used for the treatment of lupus nephritis. It has been a long journey from development, FDA approval, and marketing and sales, but the company is set to report its first sales later this week.
The entire biotechnology sector has been acting very poorly for months, and AUPH was no exception despite positive analyst coverage and some hefty price targets. There are currently seven buy ratings with an average target price of $28,50, which is double the current price.
We are looking for the reporting of sales on May 6 to be the catalyst that puts the stock on the path to reflect its very robust income stream. The company has already stated that it is comfortable with expectations of sales of around $75 million in 2021. The $1 billion mark is in sight within three years, which would require the treatment of about 15,000 patients.
The stock has been under constant pressure for months, but there is solid support now around $12, and we are looking for an uptrend to develop as the positive news starts to flow. As always, we would not chase the open on Monday morning but will be aggressively trading our position and will look for entries on lower volume pullbacks or higher volume moves through recent highs.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, employees, and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in AUPH. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.